Peru's economic growth rate will slow down in Q2, with gold production in Q1 declining by 10.5% YoY.

According to a report on the BNAmericas website, Peru's GDP growth trend since last year will continue, but the momentum will slow down.

Scotiabank forecasts that Peru's GDP growth rate in Q2 will be 3.5%, lower than the 3.9% in Q1.

The bank stated in its report, "We expect the growth rate to decline due to statistical issues: there were two fewer working days in April, and Easter fell in April, whereas it was in March in 2024."

Banco de Crédito de Perú is optimistic about the growth trend in Q2, driven by a good fishing season, favorable trade conditions, manageable inflation, higher private consumption, and lower interest rates.

Mining activities will be affected, particularly by the one-month suspension order in the Pasco province of the La Libertad region, where 13 artisanal gold miners were murdered. Production by Poderosa, Summa Gold, and Retamas will be impacted.

Peru's gold production in Q1 was 24.9 mt, a 10.5% YoY decrease.

Additionally, Shougang Hierro Peru, a major iron ore producer, suspended operations for up to five months due to a malfunction at its ship loading and unloading terminal. Scotiabank believes the impact will be reflected in the operating results for May.

The company stated in a report submitted to the securities regulator SMV: "The beneficiation plant and mine are gradually halting production. Maintenance work will be carried out at the beneficiation plant during the shutdown."